Intel have just released a pre-beta driver for their Broadwater G965 and GM965 chipsets which actually unlocks hardware transform and lighting effects as well as shader model 2.0 support, this specific to the GMA X3000 and 3100 integrated GPUs on the aforementioned chipsets. Shader Model 3.0 support is said to be possible too, and will become active in a future driver release.

The current pre-beta 14.31 driver for WinXP is available for download here, and there's more info on it over at the Dailytech.

Intel has released a pre-beta driver for Broadwater G965 and GM965 chipsets that enable hardware transform and lighting. Hardware transform and lighting were touted with the Intel GMA X3000 and X3100 integrated graphics cores, however, current release drivers did not enable the feature, despite Intel demonstrating games running with hardware T&L on GMA X3x00 hardware.